NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Skopos Auto Receivables Trust 2015-2 (“SKOP 2015-2”), an auto loan ABS transaction.
SKOP 2015-2 is expected to be collateralized by approximately $151.9 million of subprime auto loan receivables at closing out of an expected collateral balance of approximately $175.0 million after completion of the prefunding period. The transaction includes a prefunding feature that allows up to $22.7 million, or 13.0%, of the expected closing collateral balance to be funded. The prefunding period is two months. The preliminary ratings reflect the initial credit enhancement levels of 48.50% for the Class A notes, 29.50% for the Class B notes, 19.00% for the Class C notes and 14.00% for the Class D notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread. This transaction is Skopos Financial, LLC’s (“Skopos”) first rated term ABS securitization. Skopos issued its inaugural, unrated ABS transaction, Skopos Auto Receivables Trust 2015-1, in April 2015.
Skopos is an indirect automobile finance company that has been in business since 2012. As of October 1, 2015, the company has 133 full time employees and has purchased automobile loan contracts originated by dealers in 21 states by leveraging its relationships with over 2,200 dealers. The company is also servicing a portfolio with an aggregate outstanding balance of $340 million. Skopos provides automobile loans to subprime customers who have experienced prior credit difficulties or have limited credit histories with credit bureau scores typically ranging from 460 to 625. The company has an experienced, capable management team, many of which were previously involved in building a deep-subprime, nationwide automotive finance lender while at Drive Financial.
KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Skopos’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, Skopos Auto Receivables Trust 2015-2, which was published today at www.kbra.com.
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Preliminary Ratings Assigned: Skopos Auto Receivables Trust 2015-2 |
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| Class | Rating | Expected Initial Principal Balance | ||||||||
| A | AA(sf) | $93,625,000 | ||||||||
| B | BBB(sf) | $33,250,000 | ||||||||
| C | BB(sf) | $18,375,000 | ||||||||
| D | B+(sf) | $8,750,000 | ||||||||
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
